Does the title of this blog confuse you? Do you feel that the discussion here should actually be on whether it is even a good idea to invest in real estate at a young age? Well, let us answer the question for you first and then proceed further.
Yes, investing in property at a young age is indeed a great idea.
As young adults, we often drop the idea of entering real estate because of the values and lessons we have been taught since we were little children. For as long as we can remember, we have been taught to prioritize academics and make our career before we move on to taking any other major decisions in life. How about this time we try and open ourselves to the idea of balancing academics and career with investing in property for the sake of having a secure and stable future?
Trust us when we say that it is never too early to enter the real estate market and begin with the process of investing. Gone are the days when we used to wait till our mid-30s to even start planning about buying a property.
In the 21st century, young adults need to understand the importance of stability in life. Whether it is financially, emotionally, or in owning your very own home - stability is a must. Investing in properties does not only help them face challenges at a young age but also get familiar with the idea of finding stability in life.
The new-age millennial have decided to approach real estate through a new lens. It is now believed that investing in property at a young age can be a way for young adults to secure their future financially.
Investing in property is a long-term decision. Its benefits will not only last you a lifetime but along the way, you will learn lessons that will help you in every aspect of your life.
We do not need to convince you to buy property if you are 30+, but you sure need some convincing if you have children that are young or if you have not hit the 30-year-old milestone yet! Note that by “investing young”, we are talking about the below 30 age bracket.
Here is why investing in property at a young age is one of the wisest decisions you will ever make -
Gaining Knowledge of the Market
The real estate sector is broad and has a lot of elements to it. No amount of knowledge is ever enough, but you need to start somewhere. If you start your market research and study of the industry at an early age, you will be more knowledgeable and informed than most of your competitors a few years down the road.
You do not have to panic even if you have no idea about the market at this very moment. You can start by consulting a real estate provider or financial advisor that will guide you through and help you formulate your investment strategy going forward.
Tax Benefits
As a youngster, you can claim tax deductions starting from a much early stage in life. This would mean that you are utilizing your earnings and getting to save most of them. This will also help you build a good credit score which is an added advantage for future real estate investments.
Ample Time
This is your biggest asset - time. At this stage of your life, there is nothing that can stop you from succeeding. Even if it takes a little more time than you expected, appreciate that you at least have the time to research, learn, and achieve. If ever you go through a setback or loss, it will not have too much impact on your future or career since you would have the time to correct it and get back on track.
Higher Rate of Returns
You are no stranger to the fact that property prices are increasing even as you read this piece of information. Property is an asset that is unlikely to turn into a liability especially when you invest in it from the very beginning. As a young adult, start believing in the mantra that the earlier you invest, the more returns you will reap. As time passes by, your savings will keep multiplying - ultimately helping you earn profits and be tension-free when it comes to handling finances in the future.
Creation of an Asset
Even though a lot of hard work and dedication goes into the whole journey of investing in a property, it is undoubtedly worth it in the end. If you own land at a young age, there are a lot of things that you can utilize it for. It does not only give you a sense of security but can also be used for different purposes or in times of emergency.
Better Risk Management
The way you will approach business and real estate as a youngster would be different than what you would do if you were in your middle or old age. Your mindsets will be unique, giving you a fresh perspective to take important decisions. Moreover, you will have high motivation and the will to succeed, making sure you do not give up in case of any obstacles that come your way.
Liberty to Take Baby Steps
You have a lot of time in your hands, and you are just starting. If you would have decided to invest in a property in your 40s, most of your decisions would be rushed and you would prefer to get done with the whole process at the earliest. A young age will give you the freedom to take your own time to research and learn from your setbacks. Succeeding at real estate is no race but if you start early, you can grow and progress at your own pace.
Easy To Take Loans
As someone who is young and just starting, it is a given that you would need to take some home loans. The good news is that you will be eligible for a variety of home loans that too at a low rate of interest. This is because you are young and have ample time on your hands to pay off all your loans. This gives you an added advantage over those who are now in their 30s and have just started their journey.
You Can Retire Early
Maybe it is a little early to ponder upon this, but who would not like to experience a satisfying retirement with no regrets? If you start earning early, you will have the chance to retire early and do the things that you want to do with the money you have earned. Be it reading or traveling the world, early retirement will allow you to chase your dreams without thinking twice about spending money or taking a long vacation. Investing early means early benefits, leading to a sound future.
A final tip is to not be afraid to make mistakes. It is only when you go out into the industry and give yourself the freedom to commit some mistakes is when you will realize how you can do better next time. If you do not give yourself the chance to go wrong here and there once in a while, you will never get to know about the opportunities that could have come your way otherwise.
The truth is that buying a property can never go wrong till the time you have done sufficient market research and analysis. Whether you are 20 or 40, the time to buy a property is always right.
We have given you a handful of reasons as to why you should start investing in property as soon as you get the chance. Now, it is your turn to take the plunge and see the wonders investing in real estate can do to you!